India misses oil & natural gas target by wide margin
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India misses oil & natural gas target by wide margin

Last Updated: Monday, July 16, 2012, 23:41
 
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India misses oil & natural gas target by wide margin
New Delhi: India missed oil and natural gas production targets by a wide margin due to fall in output at Reliance Industries' KG-D6 fields and delays in implementation of project by ONGC, according to Planning Commission.

"Against crude oil production target of 206.73 million tonnes in 11th (Five Year) Plan period (2007-12), the anticipated achievement is 177 million tonnes, i.e. 14 percent below the target," the Plan Panel's draft note on Energy for the current 12th Five Year Plan period (2012-17) said.

Similarly, natural gas production at 216.65 billion cubic metres was 16 percent short of 255.76 bcm target.

"The major reason for shortfall in (oil) production was delays in project implementation by ONGC and Cairn Energy," it said, adding that the gas output was down "largely due to delays in implementation of KG-D6 project".

While Cairn faced regulatory hurdles in raising output from its Rajasthan fields, gas production from KG-D6 block had gone down substantially during 2010-12 compared to targetted production levels.

Cairn's Rajasthan oilfields and RIL's Krishna Godavari basin fields in Bay of Bengal are the biggest oil and gas finds in the country during the recent times.

"The balance recoverable reserve position as on April 1, 2011 of oil and oil equivalent gas is about 2,041 million tonnes, which has increased by 10.5 percent from 1,847 million tonnes as on April 1, 2007," the document said.

It projected 216.339 million tonnes of oil production during five years to 2016-17.

State-owned Oil and Natural Gas Corp's (ONGC) oil output is projected to rise to 28.27 million tonnes in 2013-14 from 25.045 million tonne in current fiscal, but will start dipping shortly thereafter and would end the 12th Plan in 2016-17 at 25.456 million tonnes.

The Plan Panel projected oil consumption to rise by a compounded annual growth rate of 4.7 percent -- from 148.279 million tonnes in 2011-12 to 186.798 million tonnes in 2016-17.

"Import dependence in petroleum is expected to increase from 76.6 percent at the end of the 11th Plan to 77.8 percent by the end of the 12th Plan," it said.

The nation's oil refining capacity is projected to rise from 232.3 million tonnes to 310.9 million tonnes by 2016-17.

"The 12th Plan presents a challenging task of maintaining growth in consumption of petroleum products and reducing subsidies/under-recoveries through price liberalisation of petroleum products," the document said.

"The policy issues that will need attention are: oil and gas supply security, pricing of petroleum products, pricing of domestically produced natural gas and its allocation, ensuring competition and open access in the pipeline transportation and distribution, conservation and efficient use of petroleum products and natural gas," it added.

PTI


First Published: Monday, July 16, 2012, 23:41


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